Reference no: EM132933930

Rocku Co., a calendar year entity, contained the following independent errors at the end of each reporting period: (Amounts in thousands)
                                                  2017               2018                    2019
Accounts Receivable          85 under           92 over             78 under
Merchandise Inventory         97 over            68 under         33 over
Accrued Income                     33 over       25 under           45 under
Prepaid Expense                      12 under            17 over
Advances to Suppliers             105 under           85 over            45 under
Accounts Payable                     50 under           40 under           20 over
Accrued Expense                      18 under             19 over              27 under
Unearned Income                     56 under             14 under            27 over
Advances from Customers            68 under            82 over             71 under
Depreciation Expense                                        12 under           16 under

Problem 1: Compute for the following:

a. Net adjustments on 2018 and 2019 Profits
b. Effects of errors on the 2017 and 2019 Accumulated Profits
c. Adjusted 2017 and 2018 Working Capital assuming unadjusted balances are P500 and P900 for the years 2017 and 2018, respectively.
d. Net adjustments on 2017 and 2019 Total Assets
e. Effects of errors on 2018 and 2019 Total Liabilities